$Alibaba (BABA.US)$ basically, why chinese stocks are cheap?...

$Alibaba(BABA.US)$ basically, why chinese stocks are cheap? Because China is having deflation. Meaning to say prices of goods and services are getting lower and lower, which in turn slashes corporate profits and guidance. Thus you see the likes of baba, Tencent trading at extreme cheap valuations that's hardly witnessed before. But what's even more interesting is that export prices reaches a level that was last visited in the 2008-2009 financial crisis. And when it touches that level, it eventually recover and hits all time high. I suspect this is highly probably the bottom of the cycle. With China aggressive economic measures to come, China government will do all it takes to push the market back to all time high again.